Why should developing countries care about circular economies?

Maximizing the lifecycle of raw materials is a major part of circular economy models. Pursuing innovation in this area provides multiple benefits at once, including improved economic stability, employment opportunities and a reduced negative impact on the environment.

In India, according to an estimate by the Ellen MacArthur Foundation, the transition to a circular economy would bring annual benefits of $624 billion USD, as well as reducing carbon emissions by 44% by 2050. For example, India’s automotive industry is currently the fifth largest in the world. Shifting to a Product-as-a-Service model would allow companies to lease products to consumers, providing a great incentive for manufacturers to make more durable and easily repairable vehicles that can stay in the market. This shift can also lower the need for virgin materials while reducing emissions and pollution at the same time.